Insurers to welcome proposals to scrap ARP

The SRA proposals to scrap the Assigned Risks Pool (ARP) will come as welcome news to insurers, according to law firm Beachcroft. Mike Willis, professional risks partner at Beachcroft said ‘The proposals come as the number of firms in the ARP reaches record levels. Given the historic experience of high loss ratios - close to 600% on average - and poor recovery of premium associated with firms in the ARP, it is no wonder that some qualifying insurers have questioned whether this is a market in which they wish to continue to operate.‘